As Malaysia moves steadily towards becoming an ageing society, the question of how to support an increasingly older workforce is more pressing than ever. By 2040, an estimated 14 percent of the population will be aged 65 and above - a significant jump from just 7.7 percent in 2025.
This shift reflects the success of public health and social development efforts but also highlights the need for comprehensive strategies to keep older Malaysians active, healthy, and economically secure.
Enter the Social Security Organisation (PERKESO), Malaysia’s trusted social safety net for more than five decades. As its role expands beyond the traditional employment landscape, PERKESO is reshaping its programmes and services to help every worker thrive in this shifting demographic environment.
Extending social security beyond the formal sector
Traditionally, social security coverage in Malaysia has focused on formal sector employees - full-time workers with regular wages and clear employer-employee relationships.
However, the nature of work is changing. Increasingly, older Malaysians are turning to part-time, freelance, or gig work post-retirement to stay active, supplement their income, or pursue their passions.
Recognising this shift, PERKESO has extended its safety net to include these non-traditional workers. Through the Self-Employment Social Security Scheme (SKSPS), PERKESO now provides protection to self-employed individuals, including those in the informal economy.
This ensures that taxi drivers, online freelancers, home-based entrepreneurs, and many others can access social security benefits that were previously out of reach.
This expansion is particularly relevant for older workers who might not be fully retired but are seeking more flexible work arrangements. The SKSPS helps safeguard their well-being by providing protection against employment injuries and other risks, making work in later life a safer and more sustainable option.
Promoting active ageing and re-employment
Older workers bring a wealth of experience, mentorship, and knowledge that can enrich workplaces and communities. PERKESO recognises the immense value of harnessing this potential and is actively promoting age-inclusive practices across Malaysian industries.
One key initiative is the Employment Insurance System (EIS), which provides retraining, upskilling, and job placement support for retrenched workers, including older Malaysians. This programme helps older workers transition into new roles or industries, ensuring they remain competitive in a rapidly changing economy.
Beyond training and placement, PERKESO also works closely with employers to foster age-inclusive hiring. This means encouraging companies to see older workers as assets rather than liabilities and to embrace practices that value experience and diversity.
Through the Return-to-Work Programme, PERKESO supports workers who have experienced illness or injury, providing comprehensive medical, vocational, and psychosocial assistance to help them regain their independence.
For older workers, this support is particularly crucial, as it can make the difference between an early exit from the workforce and a fulfilling, continued career.
Supporting health, productivity, and workplace adaptation
A healthy workforce is a productive workforce, and older workers often face unique health challenges. Issues such as chronic diseases, ergonomic risks, and mental wellness become increasingly important as workers age.
PERKESO’s Health Screening Programme (HSP), delivered through its network of clinics, plays a key role in the early detection and management of non-communicable diseases such as diabetes, hypertension, and cardiovascular conditions.
By catching potential health problems early, older workers are better equipped to manage their health and remain engaged in the workforce.
Additionally, PERKESO is working to raise awareness about workplace ergonomics and the importance of adapting jobs and work environments to meet the needs of an ageing workforce.
This includes promoting flexible work arrangements, appropriate equipment, and training on safe work practices - essential steps to help older workers thrive.
Future-proofing social protection
The journey towards an ageing society requires more than just immediate solutions. A long-term vision is needed to meet the needs of Malaysians.
PERKESO is aligning its strategies with national frameworks such as the National Ageing Blueprint and the 12th Malaysia Plan, which emphasise lifelong learning, age-friendly policies, and sustainable social protection systems.
By integrating these strategies into its planning, PERKESO is helping Malaysia build a social security system that is robust today and adaptable for tomorrow. This means anticipating changes in the labour market, evolving family structures, and the unique needs of an ageing population.
A commitment to inclusion
At its core, PERKESO’s evolving role is about ensuring that every Malaysian, regardless of age or employment status, has the opportunity to participate fully in the nation’s progress.
Extending coverage to self-employed and older workers, promoting active ageing and re-employment, supporting health and workplace adaptation, and future-proofing social protection - all of these initiatives reflect PERKESO’s commitment to leaving no one behind.
As Malaysia embraces its demographic shift, PERKESO stands as a pillar of support, helping to transform the challenges of an ageing society into opportunities for shared growth and prosperity.
In doing so, it is not only protecting older workers but also building a more inclusive, resilient, and vibrant Malaysia for generations to come.
The World Security Forum 2025
Calling all International Social Security Association (ISSA) members! Learn more about PERKESO’s coverage and benefits for Malaysians at the World Social Security Forum 2025 in Kuala Lumpur. Here, you’ll also be able to connect with over 1,000 social security leaders and discover global innovations and best practices. Detailed information at https://www.issa.int/events/wssf2025.
This Social Security series is in collaboration with PERKESO.
